Greater New Orleans

Gov. Bobby Jindal's efficiency experts hike price to $7.4 million

Gov. Bobby Jindal initially said it would cost $4.2 million for a consulting firm to recommend new ways to help balance the budget, but those costs have now soared to $7.4 million.
(Chris Granger, NOLA.com | The Times-Picayune)

The price tag has nearly doubled for Gov. Bobby Jindal's hiring of an outside consulting firm to recommend new ways to balance the state budget.

The contract for Alvarez & Marsal was worth $4.2 million when the New York-based company was hired in December. But the contract since has been bumped up to $7.4 million, according to the Legislative Fiscal Office.

In June, the consulting firm's report outlined proposals to save the state $2.7 billion over five years, either by cutting costs or increasing state revenue.

The fiscal office says the administration's contract costs increased because Alvarez & Marsal is helping state agencies to implement its recommendations.

"Saving $2.7 billion over the next five years requires a sustained, coordinated effort from agency leadership and staff. This contract addition allows A&M to provide project management services throughout the early implementation process to ensure savings goals are met," Jindal's Commissioner of Administration Kristy Nichols said in a statement Thursday.

Costs for the consultant could grow even further, because the contract doesn't end until December 2016 and new tasks could be added.